[Tricks]

Brenda Brenda:

Tricks Tricks:

Brenda Brenda:

Well, you could get a variable mortgage rate (like I have) and fix it at a certain time, then when the interest goes down, re-amortize, start a college fund for your kid, re-amortize, renovate, re-amortize. I can think of numerous reasons. If you want to take out the cash that is in the value of your house, why not?
I am on my 4th year of a variable rate mortgage, and if interest had gone up, I would have fixed in within 5 years. Now I didn't. I think I pay 2.25%. Could be 1.75% too. Try that with a fixed rate.

If you re-amortize that many times and bring your debt up to 300,000 dollars, you are doing it wrong.

"It is unclear why Mulcair would need to refinance the modest two-garage home in Beaconsfield so many times, bumping the value of the mortgage from $58,000 to $300,000."

The house is apparently worth it, or you cannot do that.
Most people like to pay off their mortgage. They obviously don't. I don't know why. Maybe they have a sick kid in the US.
I don't think their private matter is any of our business. It is not illegal. They are not stealing from anyone.

True, if he's not planning on being finance minister or prime minister I don't care all that much. But his financial position are important for those positions.

[Brenda]

Like Caelon said, with only this little tidbit, it is kind of hard to tell what his financial position actually is. Maybe he has $4M in bonds and stocks somewhere. I'd say he did a good job then, turning his $58k house into a $3.7M profit.

[kenmore]

I don't think it is anyones business really. He must have qualified for the mortgages and so would the property have. Obviously he pays the bills or they would have reposessed it along time ago. Some people borrow on property to finance other portfolios. Perhaps he has a large investment portfolio. Just sayin .

[Gunnair]

kenmore kenmore:

I don't think it is anyones business really. He must have qualified for the mortgages and so would the property have. Obviously he pays the bills or they would have reposessed it along time ago. Some people borrow on property to finance other portfolios. Perhaps he has a large investment portfolio. Just sayin .

What the fuck???? Zombie Kenmore?

Welcome back.

[Freakinoldguy]

The only institution Mulcair hasn't used to refinance his mortage is the Soprano Lending and Mortgage Company, Newark New Jersey.

And no I don't believe he's invested all this money into a portfolio, since that`d be far to capitalistic for this socialist PM wannabee.

[OnTheIce]

Brenda Brenda:

Like Caelon said, with only this little tidbit, it is kind of hard to tell what his financial position actually is. Maybe he has $4M in bonds and stocks somewhere. I'd say he did a good job then, turning his $58k house into a $3.7M profit.

Do you know anyone who's mortgaged their house 10+ times?

I know many people from the working poor to the filthy rich and I've never seen anything like that.

[Brenda]

OnTheIce OnTheIce:

Brenda Brenda:

Like Caelon said, with only this little tidbit, it is kind of hard to tell what his financial position actually is. Maybe he has $4M in bonds and stocks somewhere. I'd say he did a good job then, turning his $58k house into a $3.7M profit.

Do you know anyone who's mortgaged their house 10+ times?

I know many people from the working poor to the filthy rich and I've never seen anything like that.

I think my parents did...
Not everyone is comfortable with a 30 year fixed mortgage. I am not. I NEVER had a fixed rate for more than 3 years. So, yes, I would have been one of those people. And with my income rising, I'd probably up it also to have some extra cash to invest in something, or just spend. When borrowing (and investing) is cheaper than saving...
Also, your home office is deductible. I am sure he has one. Why keep your mortgage low when you can deduct half your house?

[OnTheIce]

Brenda Brenda:

I think my parents did...
Not everyone is comfortable with a 30 year fixed mortgage. I am not. I NEVER had a fixed rate for more than 3 years. So, yes, I would have been one of those people. And with my income rising, I'd probably up it also to have some extra cash to invest in something, or just spend. When borrowing (and investing) is cheaper than saving...

And very few people have 30 year fixed rates..and even still, you don't have to re-mortgage your house to switch, you just switch banks, term and rate and pay the penalty.

Going back to the bank 11 times asking for more money is not common.

[Brenda]

OnTheIce OnTheIce:

Brenda Brenda:

I think my parents did...
Not everyone is comfortable with a 30 year fixed mortgage. I am not. I NEVER had a fixed rate for more than 3 years. So, yes, I would have been one of those people. And with my income rising, I'd probably up it also to have some extra cash to invest in something, or just spend. When borrowing (and investing) is cheaper than saving...

And very few people have 30 year fixed rates..and even still, you don't have to re-mortgage your house to switch, you just switch banks, term and rate and pay the penalty.

Going back to the bank 11 times asking for more money is not common.

I doubt they are alone. It is a 32 year period we are talking about.

[ShepherdsDog]

$1:

this socialist PM wannabee.

Is he really? or is he an opportunist who managed to finally land in a party that he could control....Quebed Liberal minister under a former Tory...contemplated jumping to the Conservatives...have my doubts he's very red or even pink. At least no more a lefty than Lucien Bouchard was a PQ socialist or belinda Stronach a Liberal.

[andyt]

$1:

Does Mulcair have it right?

Thomas Mulcair remortgaged his house 11 times since the early 1980s.

Is this bad debt and the result of poor financial planning? Or is this exactly what debt should be used for — enhancing both your career and your wealth?

We don’t know, he isn’t saying.

But a weekend personal finance story on so-called “good debt” illustrates just how controversial the subject of borrowing to invest is.

‘Debt is like gravity and once you are in its grasp there is no escaping’
“Almost like a drug dealer telling you there’s nothing wrong with drugs,” one reader named Miguel commented on my story, one of dozens who chimed in online and via email.

Others argued that advocating borrowing to invest is “criminally irresponsible.”

Clearly there is paranoia about debt in our society, based on some respondents who equate it with slavery.

“Debt is like gravity and once you are in its grasp there is no escaping. We get into more and more debt and believe the lies they sell on TV.”

But Mulcair’s 11 mortgages may just be a sign of someone who “gets it.” Maybe he used the cash to finance his political career — the quintessential “borrowing to invest.” Considering he now makes $157,731 as a Member of Parliament and another $75,516 as leader of the opposition, that would be a pretty effective use of debt.

His mortgage of $300,000, which started as a mortgage of $58,000 is certainly manageable on that salary. Especially since in Ottawa, he lives for free at Stornoway. And now he has a gold plated government pension to see him through his elder years.

Doesn’t look like he is a candidate for credit counselling.

Some readers clearly understand the logic of using debt to get ahead. “Borrowing to invest is totally legit as long as you can be reasonably sure that your returns will exceed your interest – and that requires some financial knowledge. It’s borrowing in order to spend that is problematic,” wrote someone named Obzabor.

If you are borrowing money at 3.5% and you have an opportunity for a yield of about 4.5% in a basic investment of say real estate investment trusts, that looks like a winner even before you consider the advantage of writing off interest.

“Sorry, but taking on debt is engaging in risk,” wrote reader with the handle Hammertime. Of course, there’s risk. With risk comes reward.

http://business.financialpost.com/2012/ ... -it-right/

[SprCForr]

Curtman Curtman:

Ok.. So tweeting about Vic Toews being a liar and a cheat is grounds for an inquiry, but Thomas Mulcair's mortage is fair game?

From what I understand it's different. Mulcair's mortage info is available to the public.

[andyt]

What I read is that Toews' info was also public. Aren't divorce cases usually on public record? The only issue seemed to be using govt resources to tweet about it.

[OnTheIce]

Brenda Brenda:

Also, your home office is deductible. I am sure he has one. Why keep your mortgage low when you can deduct half your house?

You can only deduct your home office as an expense if your home is where your business is located. I complete all the forms annually for my wife who runs a business from our home.

[OnTheIce]

Brenda Brenda:

I doubt they are alone. It is a 32 year period we are talking about.

Then how many others do you know? How many times have you even heard of people mortgaging their house that many times?

It's rare, regardless of how you'd like to spin it.